Table of Contents
The importance of supply chain management in the retail sector
The challenges that supply chain management in the retail sector faced during pandemic
Introduction
Background of the research
The rapid emergence and spread of the COVID-19 pandemic has severely disrupted the global supply chain. This paper aims to provide a comprehensive analysis of the various challenges that manufacturers have faced due to the outbreak. Through a dynamic capability framework, the researcher can identify the effective strategies that they can use to address these issues. A literature review, discussions with experts, and evaluation of various news articles are used to identify ten major challenges in the supply chain (Saddikuti et al., 2020). The most common challenge that manufacturers face is the need for more labour. The second most common challenge is the need for more material. The results of this study suggest that the need for more consistency in supply chain management is also a significant issue. This paper provides a variety of strategies and guidelines that can help practitioners and scholars address these issues.
Although supply chain studies related to the outbreak of COVID-19 are still in their early stages, they can provide a valuable contribution to the development of effective strategies and procedures. There have been few studies that have focused on the theoretical aspects of the situation. However, a literature review can lead to future research. The various challenges that manufacturers face due to the outbreak need to be addressed adequately by the global supply chain debate. These issues have prompted many companies to rethink their strategies for managing their supply chains (Xu et al., 2020). Besides disrupting the operations of supply chains, the emergence and spread of the COVID-19 pandemic have also affected the policies and relationships of various companies in their networks. For instance, many firms have shifted their sourcing strategies to local regions. In addition, the outbreak has caused some companies to rethink their inventory strategies. It is crucial to understand how the COVID-19 pandemic may affect the business landscape of interconnected supply chains.
About the company
Unilever is a multinational consumer goods organisation that is based in London. It produces various products such as food, beverages, baby food and soft drinks, energy drinks, and cleaning agents (Unilever, 2023). The company also has a variety of other products for the healthcare and pharmaceutical sectors.
Problem statement
The outbreak of the coronavirus has affected various aspects of the global supply chain. It has created a supply shock, a demand shock, and a logistical challenge. For instance, multinational companies had a supply shock due to the outbreak in the UK, which affected their export of face masks. Due to the increase in demand for certain products, the supply chain experienced a gap between its demand and supply. Some of the factors that affected the supply chain included the delayed delivery of goods, the lack of labour, and travel disruption (Ishida, 2020). Before the emergence of the COVID-19 pandemic, most supply chain managers focused on just-in-time inventory management. However, this approach still needs to prepare the global supply chain for the effects of severe shocks. Due to the emergence of the coronavirus pandemic, the importance of mitigating the effects of the disease on the global supply chain has increased. This is why it is important that organisations thoroughly evaluate their supply chain operations and strategies.
Research question
- What is the importance of supply chain management in the retail sector?
- What are the challenges that supply chain management in the retail sector faced during the pandemic?
- What are the possible recovery strategies used by the retail industry in order to recover the supply chain management processes?
Research aim
The aim of the research is to analyse the Recovery process of Supply Chain Management in the retail industry post-COVID-19 pandemic.
Research objective
- To analyse the importance of supply chain management in the retail sector.
- To explore the challenges that supply chain management in the retail sector faced during the pandemic.
- To determine possible recovery strategies used by the retail industry in order to recover the supply chain management processes.
Research rationale
The global health situation has been severely disrupted by the outbreak of COVID-19/SARS-CoV-2. The first cases of the disease were reported in Wuhan, China, in December 2019. The virus then spread to other countries and affected billions of people. The outbreak has gained widespread attention from both practitioners and scholars in the supply chain community. Although some sectors experienced a decline in demand, other areas saw a spike in demand (Micheli et al., 2021). In some countries, such as the UK, economic activities were temporarily suspended. The lockdowns have affected various aspects of global business. The COVID-19 outbreak has caused various long-term effects, such as supply chain disruptions. 1000+ companies retail industry, 94% of them have already experienced these issues.
Literature review
The importance of supply chain management in the retail sector
Mashud et al. (2021) stated that the COVID-19 pandemic had caused severe disruption to the global supply chain, which is regarded as one of the most significant disruptions in human history. Its effects have been transmitted through various systems and have affected multiple areas.In the past, studies have shown that small supply chain disruptions can create ripple effects.The COVID-19 pandemic is more severe than any previous outbreak as it has caused significant logistical and supply chain disruptions.
Ahmed et al. (2022) pointed out that various studies have been conducted to analyse the various effects of the COVID-19 outbreak on the global supply chain. They have examined different aspects, such as the production recovery strategy, the ripple effect, and the management of demand and MSO.These studies have yet to look into the various challenges that companies face when it comes to the supply chain. Instead, they have focused on the factors that affected the business operations of the affected companies.The UK was chosen as the study's geographical location due to its prominent manufacturing industry and the fact that it is one of the most densely inhabited countries in the world. It also experienced significant supply chain disruptions caused by the outbreak.It is important to conduct a comprehensive analysis of the UK's supply chain problems and suggest effective mitigation strategies (Sudan and Taggar, 2021). To minimise the effects of the COVID-19 pandemic, it is crucial to develop resilient supply chain theories.
Chang et al. (2022) explored that many of the studies that have been conducted on the COVID-19 outbreak revealed that the supply chain was not prepared for the disaster. It also lacked the necessary resilience to handle the effects of the pandemic.A review of the literature has shown that various factors, such as the adaptation, recovery, and sustainability of the supply chain, are important when designing a resilient strategy for dealing with a pandemic. Although many of the studies have shown that the lessons learned from the incident can be used to improve the efficiency of the global supply chain, the exact steps that should be taken to minimise the effects of the outbreak still need to be made clear. Some experts also believe that it is important to take a fresh look at the current state of the supply chain to ensure that it is ready to handle future outbreaks.
Thechallenges that supply chain management in the retail sector faced during a pandemic
According to Burgos and Ivanov (2021), the concept of supply chain resilience refers to the various capabilities that enable organisations to maintain their competitive advantage and improve their operational efficiency. The rapid emergence and evolution of the coronavirus have created a unique environment that requires firms to adopt a proactive approach to address disruptions. The ability of an organisation to adapt to the changes brought about by environmental conditions is a dynamic capability that can help it manage its risks and respond effectively to meet its goals. The concept of the dynamic capability view is a management theory that states that a firm can manage its resources effectively in a dynamic environment. This is different from the resource-based perspective, as it assumes that the environment is dynamic in nature.
Figure 1 Supply chain challenges
(Source- Saddikuti et al., 2020)
- Uncertainty of demand- The outbreak of the COVID-19 virus has disrupted the buying habits of consumers. This has caused a significant reduction in the demand for various commodities, which has affected the operations of upstream suppliers and manufacturing companies.Due to the lack of demand, the poultry and dairy industries have been severely affected. Only raw milk is considered essential for households (Saddikuti et al., 2020). However, a large portion of the milk's demand comes from its use in various industries, such as bakeries and ice cream shops.Due to the outbreak, the demand for milk products has decreased by 30% in some areas. This is because people are afraid of getting infected with the virus and consuming products that are contaminated with it.
- Inconsistency of supply- The volatility in the prices and quantity of products and the lack of supply-side capacity are some of the factors that have disrupted the operations of various businesses. These include small and medium-sized enterprises (SMEs) in the UK.In the market, certain essential commodities, such as grains and pulses, have become scarce. In the city of London, the daily purchases of grains have doubled. This is because the various actors in the supply chain, including retailers, wholesalers, and distributors, have been hoarding products (Xu et al., 2020).Such practices could result in supply constraints, which would lead to volatile prices and encourage inconsistent supply, which would also prevent the smooth operation of the entire supply chain.The concept of the supply chain refers to the various entities that work together to deliver goods and services to a company's customers. Having a clear understanding of the multiple supply chains is very important to ensure that the company's operations are running smoothly. Unfortunately, many businesses still need to implement this process due to the lack of visibility.
- Scarcity of material - Due to the emergence of the SARS pandemic and the lockdown of various nations, including the UK, the global market is now uncertain. The sudden increase in the demand for certain products, which is caused by panic buying, has raised concerns about the availability of key supplies.Due to the lack of raw materials, many manufacturing companies have needed help restarting their operations (Ishida, 2020). These companies cannot get the raw materials they previously sourced from London due to the lockdown.The UK's lockdown on imports, which lasted for several weeks, had a minimal impact on the global market. However, it has been reported that certain sectors, such as automobiles and pharmaceuticals, are experiencing a shortage of components.
- Delays in delivery- One of the most challenging factors for companies is deciding between the time it takes to get the products to their customers and the willingness of their consumers to wait. This is because, in some cases, customers need to prepare for long wait times.The time it takes to acquire raw materials is also uncertain for most companies due to their dependence on external suppliers. Due to the COVID-19 pandemic, restrictions on the movement of goods and commodities have been implemented in areas where containment or restricted zones are in place.The increased lead times caused by the restrictions have also caused the delivery of semi-finished goods and raw materials to be delayed. According toMicheli et al. (2021), the average lead time for suppliers of Anvyl products in China has increased by around 20 days since 2019. This issue could affect the entire supply chain and prevent companies from operating smoothly.
Possible recovery strategies in order to recover the supply chain management processes in the post-pandemic situation
Mashud et al. (2021) explored the strategies used in the supply chain response to the COVID-19 pandemic based on the main challenges encountered during the outbreak; the researcher believes that these solutions can be extended to address the various threats that may arise in the future. It depicts that various strategies adopted by the manufacturing industry during the pandemic were aimed at improving the efficiency and resilience of the supply chain. They also identified the key resources and capabilities that the industry needed to address the challenges that it faced.
According to Sudan and Taggar (2021), the study will also offer the various strategies used by the retail industry during the epidemic were aimed at improving the efficiency of the supply chain and mitigating the effects of the pandemic. In the long run, the industry should adopt a comprehensive approach to address the multiple threats that could arise in the future. Adopting disruptive technologies can help the supply chain process information more efficiently and help minimise the impact of future disruptions. Various factors, such as the availability of supply constraints and the agreements between different entities, can also be considered when it comes to Optimising the product mix.
Ahmed et al. (2022) pointed out that one of the most important factors that a manufacturing firm should consider when it comes to improving its capacity and flexibility is the availability of flexible and dedicated manufacturing facilities. This can help it meet the needs of its customers by producing regular items in bulk and quickly responding to any demand changes. Another important factor that a manufacturing firm should consider when it comes to improving its capacity and flexibility is the availability of reserve capacity. This can help it meet its needs by producing regular items in bulk and quickly responding to any demand changes. However, it can also increase the cost of maintaining its idle resources.
Methodology
Research Philosophy
The philosophy of research describes the various steps involved in the process of gathering information. It can also be used to describe the different approaches that the study should take. An interview technique is usually utilised to gather data. This method aims to focus on the qualitative aspects of the study, and it allows the researcher to identify the areas of the study where they should focus their attention (Chen et al., 2021). Through this method, researchers can observe the reactions of their subjects. The objective of this project is to analyse the link between social elements and subjective elements, in reality, using interpretivism, a scientific philosophy that aims to provide a comprehensive analysis of the complex structure of the world. Unlike doxology, this philosophy does not rely on dogma and relies on subjective observations to arrive at a conclusion.
Research approach
In order to collect data, an inductive method is usually used. This process allows the researcher to focus on the details of their findings, and it can also help them find the most important information by utilising established theories. Conversely, a research approach involves coming up with an assumption set that will allow them to gather data efficiently (Pandey and Pandey, 2021). This process can help the researcher identify the issue that they are trying to solve. During the literature review process, they search for references related to the topic. Some of the most common sources that the researcher used for this study were Google, PubMed, and MSN. These databases allow the researcher to find reliable and authentic information sources easily.
Methodology
Secondary data gathering is a crucial part of any research project, as it can help uncover important details about the study's subjects. However, it is typically not utilised as the primary method due to COVID-19 spreading. On the other hand, a thematic analysis is a more practical way to gather information quickly. A secondary data collection process is a process that scientists use to gather information about a certain topic. This process can be carried out through various sources, such as online databases. Having a research strategy is very important for scientists to develop a plan and objectives for their studies (Tabuena et al., 2021). Having a research strategy helps scientists develop a plan and objectives for their studies. It can also help them identify the most important factors that will affect their study's success. For instance, an exploratory study is a type of research that seeks to find out what kinds of people are most likely to be affected by the study. An exploratory study can be carried out in either a qualitative or quantitative manner. Usually, when it is not feasible to gather data, an exploratory study takes place. This type of research allows scientists to identify their ideas. Unfortunately, these types of studies could be more useful tools for conducting studies.
Research techniques
The systematic review is a process utilised to gather information about a literature review. It can be performed using the framework known as the PRISMA model. A mono-method study provides researchers with the opportunity to collect important data. Brand design can help researchers gain a deeper understanding of how the responses and thoughts were generated in a study. When choosing research methods, the goal is to ensure that they are effective (Hughes and Barlo, 2021). When it comes to assessing the effectiveness of a systematic review, reliability and validity are important factors that are taken into account. The objective of the process is to find out what literature is related to a specific research area.
Data collection
The goal of a meta-analysis is to analyse a literature review's main objective. It involves identifying various factors that can influence the results. The process can help improve a study's generalisability. Another aspect of meta-analysis is to identify the link between different outcomes. Through descriptive analysis, researchers can formulate ideas and concepts that are based on the available information (Chen et al., 2021). On the other hand, research methodology allows them to establish a clear understanding of the data. Once the research has been established, it is crucial that the researcher begins the process of selecting the right strategy and data analysis, as well as other steps.
Data Analysis
When conducting continuous comparisons, researchers can improve the quality of their studies by gathering data from various sources. Through data analysis, they can then come up with an objective conclusion. This process can help them create a set of outcomes. This process involves gathering and analysing a lot of data (Nayak and Singh, 2021). Through the derived insights, the researcher can then come up with a conclusion. This step involves taking the data and reducing it into small pieces. The time horizon is the period when the researcher can collect all the necessary information.
Ethical consideration
The data collected during the course of a study will be deleted once the relevant conclusions have been reached. Doing so helps ensure that the results are correct and that the objectives of the study have been achieved (Pandey and Pandey, 2021). In addition to following the rules and regulations of the study, researchers should also make sure that the data they gather is secure. Aside from gathering necessary information, researchers should also consider the availability of resources that can help them carry out their studies. When it comes to qualitative research, ethical considerations should be taken into account.
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References
Ahmed, T., Karmaker, C. L., Nasir, S. B., and Moktadir, M. A. (2022) Identifying and analysis of key flexible, sustainable supply chain management strategies toward overcoming the post-COVID-19 impacts. International Journal of Emerging Markets, (ahead-of-print).
Burgos, D., and Ivanov, D. (2021) Food retail supply chain resilience and the COVID-19 pandemic: A digital twin-based impact analysis and improvement directions. Transportation Research Part E: Logistics and Transportation Review, 152, 102412.
Chang, S. E., Brown, C., Handmer, J., Helgeson, J., Kajitani, Y., Keating, A., and Roa-Henriquez, A. (2022) Business recovery from disasters: Lessons from natural hazards and the COVID-19 pandemic. International Journal of Disaster Risk Reduction, 80, 103191.
Chen, R., Zhao, R., Deng, S., Zhao, L., and Xu, W. (2021) A cycle research methodology for thermo-chemical engines: From ideal cycle to case study. Energy, 228, 120599.
Hughes, M., and Barlo, S. (2021) Yarning with country: An indigenist research methodology. Qualitative Inquiry, 27(3-4), 353-363.
Ishida, S. (2020) Perspectives on supply chain management in a pandemic and the post-COVID-19 era. IEEE Engineering Management Review, 48(3), 146-152.
Mashud, A. H. M., Hasan, M. R., Daryanto, Y., and Wee, H. M. (2021) A resilient hybrid payment supply chain inventory model for post-Covid-19 recovery. Computers and Industrial Engineering, 157, 107249.
Micheli, P., Johnson, M., and Godsell, J. (2021) Editorial How the Covid-19 pandemic has affected, and will affect, operations and supply chain management research and practice. International Journal of Operations and Production Management, 41(6), 773-780.
Nayak, J. K., and Singh, P. (2021) Fundamentals of research methodology problems and prospects. SSDN Publishers and Distributors.
Pandey, P., and Pandey, M. M. (2021) Research methodology tools and techniques. Bridge Center.
Saddikuti, V., Galwankar, S., and Venkat, A. S. S. (2020) Supply chain management and restart of the economy in post-COVID-19. In Contemporary Developments and Perspectives in International Health Security-Volume 2. IntechOpen.
Sudan, T., and Taggar, R. (2021) Recovering supply chain disruptions in post-COVID-19 pandemic through transport intelligence and logistics systems: India's experiences and policy options. Frontiers in Future Transportation, 2, 660116.
Tabuena, A. C., Hilario, Y. M. C., and Buenaflor, M. P. (2021) Overview and exemplar components of the research methodology on the research writing process for senior high school students. International Journal of Trend in Scientific Research and Development, 5(3), 117-126.
Unilever (2023) We are Unilever. Unilever. [Online]. Available at:https://www.unilever.com/our-company/. [Last accessed: 31/03/2023].
Xu, Z., Elomri, A., Kerbache, L., and El Omri, A. (2020) Impacts of COVID-19 on global supply chains: Facts and perspectives. IEEE Engineering Management Review, 48(3), 153-166.
